The Guarantor Rental Agreement is commonly used in Malaysian property rentals where additional security is required beyond the standard tenant obligations. This typically occurs in situations involving students, first-time renters, or tenants with limited credit history. The document establishes a three-way relationship between landlord, tenant, and guarantor, ensuring that the landlord has recourse to the guarantor if the tenant fails to meet their obligations. Under Malaysian law, this agreement must comply with the Contracts Act 1950 and should be properly stamped under the Stamp Act 1949 to be admissible in court. The agreement includes comprehensive details about the guaranteed obligations, enforcement mechanisms, and the specific circumstances under which the guarantee can be called upon.
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1. Parties: Identifies and provides full details of the Landlord, Tenant, and Guarantor including names, identification numbers, and addresses
2. Background: Sets out the context of the agreement, referring to the main tenancy agreement and the need for a guarantee
3. Definitions: Defines key terms used throughout the agreement including 'Guaranteed Obligations', 'Tenancy Agreement', and 'Rental Period'
4. Scope of Guarantee: Details the extent of the guarantor's obligations and liabilities under the agreement
5. Guarantor's Obligations: Specifies the primary obligations of the guarantor including payment obligations and performance guarantees
6. Duration of Guarantee: Specifies the time period for which the guarantee remains valid and any conditions for extension
7. Landlord's Rights and Remedies: Outlines the landlord's rights to enforce the guarantee and available remedies in case of default
8. Continuing Security: Establishes that the guarantee remains in force despite any changes to the main tenancy agreement
9. Indemnity: Guarantor's commitment to indemnify the landlord against losses due to tenant's default
10. Notices: Specifies how and where formal notices should be served between parties
11. Governing Law and Jurisdiction: Confirms Malaysian law as governing law and specifies jurisdiction for disputes
12. Execution: Formal signing section with space for signatures, witnesses, and dates
1. Joint and Several Liability: Required when there are multiple guarantors, establishing that each guarantor is liable for the full amount
2. Guarantee Limit: Optional cap on the guarantor's liability, if agreed between parties
3. Early Termination Rights: Include when parties agree to specific conditions under which the guarantee can be terminated early
4. Assignment and Transfer: Include when the agreement needs to address whether rights can be assigned to other parties
5. Death or Bankruptcy Provisions: Include specific provisions for what happens to the guarantee in case of guarantor's death or bankruptcy
6. Variation of Tenancy: Include when the main tenancy agreement might be varied without affecting the guarantee
1. Schedule 1 - Main Tenancy Agreement: Copy or key terms of the main tenancy agreement being guaranteed
2. Schedule 2 - Guaranteed Amounts: Detailed breakdown of the rental amounts, deposits, and other financial obligations being guaranteed
3. Schedule 3 - Property Details: Full description and details of the rental property
4. Schedule 4 - Guarantor's Statement of Assets: Optional declaration of guarantor's financial position and assets
5. Appendix A - Form of Notice: Standard templates for notices to be used under the agreement
6. Appendix B - Guarantor's Proof of Identity: Copies of guarantor's identification documents and proof of address
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